Why Your Homeowners’ Association Needs Insurance Coverage

Responsible home ownership is more than upkeep and timely mortgage payments. It also includes purchasing insurance to cover the specific needs of your property, which will certainly include property insurance and any location-specific coverage, such as flood insurance. Many homes are located in neighborhoods and communities with homeowners’ associations or HOAs. It may not be as obvious, but HOAs also need insurance protection.

What Does HOA Insurance Involve?

It is the responsibility of an HOA to secure policies that cover the needs of the association. These are the most common HOA insurance coverage’s:

  • General Liability Property. This covers structures and is especially necessary for HOAs involving condos and co-ops.
  • Regular Liability. This covers injuries to visitors who enter buildings.
  • Directors and Officers. Protects anyone serving on an HOA board.
  • Social Host Liability. If an HOA has a community clubhouse or other places that can be used for private events.
  • If the HOA has a garage for parking by non-members, this coverage protects against damages and theft.
  • Discrimination Claims. This is coverage that can protect an HOA being sued for discrimination by an owner facing foreclosure.

Your HOA should also consider workers compensation and employee dishonesty protection for liability coverage involving employees or contractors of the HOA.

A Business in Disguise

HOAs should think of themselves as a business or organization when it comes to insurance protection. When you need homeowners coverage in Connecticut, seek out a qualified provider of HOA Insurance. This protects not only the HOA but the property owners in the association as well.